In the current digital era, the Internet has triggered the Fourth Industrial Revolution, marked by the development of the digital economy globally, among others.
"Digitalization is a means to push for the transformation to a new economy with added value and better competitiveness," Coordinating Minister for Economic Affairs, Airlangga Hartarto, once said.
Digital technology has opened up the possibility of greater collaboration among economic stakeholders for expediting trade, creating jobs, and improving access to public services, he noted.
"This momentum must be used to push the digital transformation process," he stressed.
The value of the digital economy of the Association of Southeast Asian Nations (ASEAN) has crossed US$100 billion, he noted. It is predicted to grow threefold by 2025 to more than US$300 billion, the minister said.
The largest contributor to the ASEAN digital economy has been e-commerce, followed by transportation and food delivery, online media, and travel, he said. Healthtech and edutech have also grown into promising sectors, he added.
Indonesia's digital economy is currently valued at US$44 billion, making it the largest in ASEAN, he pointed out. This figure is predicted to grow eightfold by 2030, according to Hartarto, who is also the chairman of the Golkar Party.
Most of the value of the digital economy has been contributed by e-commerce transactions, which are estimated to increase to US$32 billion by 2025, reflecting a growth of 54 percent, the minister said.
"The development of the digital economy in Indonesia can also be seen from the total investment in digital platforms, which is around 38.7 percent, the largest number in Southeast Asia. Strategic sectors that are the new strengths of the digital economy include agritech, fintech, edutech, and healthtech," he added.
Furthermore, Indonesia is striving toward Industry 4.0 as part of its digital transformation, which is focused on human resource strengthening, investment climate, and green development, the minister informed.
Indonesia is also preparing to realize its vision of Golden Indonesia through Industry 4.0 by 2045, which will mark a century of its independence.
The country’s digital economy and Industry 4.0 development is currently the fastest in Southeast Asia, said President Joko Widodo (Jokowi), according to a report on the website of the Cabinet Secretary.
“Indonesia’s digital economy and Industry 4.0 are the fastest in Southeast Asia. We have approximately 2,193 startups, the fifth largest in the world. We also have five unicorns and one decacorn,” the President said in his opening remarks at the online inauguration of the 2021 Hannover Messe. He joined the event from the State Palace, Jakarta on April 12, 2021.
Indonesia’s Industry 4.0 is forecast to contribute up to US$133 billion to the country’s gross domestic product (GDP) in 2025, Widodo noted.
To expedite the materialization of the digital industry, the Industry Ministry, on December 2, 2021, launched the Center for Indonesia Digital Industry 4.0 (PIDI 4.0) as a one-stop solution for the adoption of Industry 4.0 in Indonesia and a window on Indonesia 4.0 for the world.
The PIDI 4.0 was developed at the initiative of Minister Hartarto, according to Industry Minister Agus Gumiwang Kartasasmita.
"I am optimistic that PIDI 4.0 partners would help accelerate the transformation of Industry 4.0 in Indonesia," the Industry Minister said.
PIDI 4.0 has five functions, with the first being conceptual design for showcase, he informed.
"PIDI 4.0 is a showcase to demonstrate how technology can create efficiency and increase productivity in the production line. This showcase is specifically directed at the food and beverage and automotive industries from the tier 1 industry in Indonesia," Kartasasmita explained.
The second function is capability building, wherein PIDI 4.0 will become a means to bolster the competence of top-level management, managers, engineers, and workers from the industry, he said.
Capability building involves a combination of theoretical knowledge and hands-on experience for increasing learning retention and tracks, he elaborated. It covers specific topics according to the industry's pain points, he added.
Third, PIDI 4.0 will build and offer access to an exclusive network of the Industry 4.0 ecosystem as well as pioneer collaborations for the ecosystem that involve domestic and foreign institutions, including industrial users, technology providers, service providers, accelerators, educational institutions, and research and development institutes, he added.
Its fourth function will be that of a delivery center, he said. PIDI 4.0 will provide assistance to companies in the transformation process through field and forum services as well as a Do-It-Yourself (DIY) portal for companies, Kartasasmita explained.
Fifth, PIDI 4.0 will serve as an engineering and artificial intelligence (AI) center, where it will organize two main related activities: research brokerage and testbed, he added.
Kartasasmita said that in order to accelerate the adoption of Industry 4.0, the ministry has also developed PIDI 4.0 satellites for polytechnic schools, vocational schools, and industrial areas.
"These satellites serve as a medium for accelerating the development of human resources that are capable of becoming agents of the Industry 4.0 transformation," he added.
So far, 20 companies have joined as partners in the PIDI 4.0 ecosystem, he informed.
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Editor: Rahmad Nasution
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